City Council Planning Sessions

Monday, October 22, 2018 1. Call to Order The Planning Session was called to order at 7:13 p.m. by Mayor Gresk following the conclusion of public hearings. The following were: Physically Present: Mayor Gresk Councilman Barbier Councilwoman Fitch Councilman Prendiville Councilman Rutledge Councilman Scalzo Councilman Suess Absent: None City Staff Present: Michael Dzugan, City Manager John Duguay, Assistant City Manager James Kozik, Director of Planning & Economic Development Robert Lehnhardt, Director of Finance Paul Redman, Director of Engineering Susan Bishel, Public Relations Coordinator 2. Public Comment There were no public comments. 3. Approval of October 8, 2018 Minutes The City Council approved the October 8, 2018 Planning Session Minutes. 4. Audit Ending April 30, 2018 Matt Barron of Lauterbach & Amen LLP, the firm that audited the City’s finances, reviewed the City’s Comprehensive Annual Financial Report for the fiscal year ending April 30, 2018. The auditors gave the City’s financial reporting and practices an unmodified opinion, which is the highest rating given. Mr. Barron reviewed the statement of net position, which showed governmental activities to be approximately $186 million, and once capital assets are taken out, the net position is -$700,000 due to the inclusion of pension fund liabilities. He stated the firefighters pension fund is 73% funded, the police pension fund is 62% funded, and IMRF pension fund is 101% funded. In reviewing the fund level financials, the total fund balance was $37.4 million, of which $16.8 million is the General Fund. The income statement, which is a total across all funds, showed a total decrease of $176,000 due to budgeted capital projects and a transfer from TIF2 toward the parking fund. The current fund balance is at 44%, which exceeds the fund balance policy of 40%.  CITY COUNCIL PLANNING SESSION MINUTES OCTOBER 22, 2018 For the business funds, the net position was $52.4 million, with $9.4 million in unrestricted cash. He stated the water and sewer funds are doing well, and the City should monitor the parking and storm sewer funds. In reviewing the City’s police and fire pension funds, the total fund balance is $87 million. The 10-year trend history shows the City has met or exceeded the actuary’s requested contributions each year, and the City’s funding levels of 62% for the police pension fund and 73% for the fire pension fund are very good compared to the state average of 50%. In response to Council questions, Mr. Barron stated the actuaries are aiming for the City’s pension funds to be 100% funded by 2040. In response to Council questions, Assistant City Manager Duguay stated retirees of the City pay 100% of the health insurance benefits cost if they choose to remain on the City’s healthcare benefits after retirement. Mr. Barron answered Council questions by stating the City’s government-wide total unrestricted reserves are about $9 million including pension liabilities, and for just government funds, it’s approximately $37.4 million. 5. Raffle Ordinance Amendments City Manager Dzugan reviewed a request from St. Michael’s School to do a raffle with the possibility of a roll-over of prize money. Current City ordinance does not allow this, and Wheaton is the only municipality in the area that doesn’t allow for a roll-over raffle. City staff is recommending changes to the raffle ordinance and the maximum retail values set in the ordinance. He stated state statute doesn’t place a limit on the aggregate retail value, maximum retail value or roll-over raffles. City staff recommended setting a maximum of $200,000. Trevor Orsinger, 1375 N. Sumner St., encouraged the Council to make these changes, which would allow St. Michael’s School to potentially raise a significant amount for the school. In response to Council questions, City Manager Dzugan stated it would not be possible to predict how high a roll-over raffle amount could reach, but the Council could change the ordinance to a higher amount if the need arises. The Council expressed support for the proposed changes as presented and directed City staff to prepare the first reading of an ordinance for their consideration at the Nov. 5 City Council meeting. 6. City Council/City Staff Comments Councilman Rutledge thanked the Council and others who have expressed support and condolences in the loss of his wife. 7. Adjournment The meeting was adjourned at 7:45 p.m. Respectfully submitted, Susan Bishel 2